Chances are that where you own a flat in Felling and Pelaw you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Using our service gives you better control over the value of your Felling and Pelaw leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Tyler, came seriously close to the 80-year mark with the lease on his studio flat in Felling and Pelaw. In buying his flat two decades ago, the length of the lease was of no concern. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Tyler was able to extend his lease just under the wire last May. Tyler and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If the lease had dropped below 80 years, the premium would have gone up by at least £1,075.
In 2010 we were approached by Mr and Mrs. G Leroy who, having took over the lease of a ground floor apartment in Felling and Pelaw in May 2011. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Felling and Pelaw with 100 year plus lease were in the region of £230,800. The average ground rent payable was £60 collected monthly. The lease lapsed in 2086. Given that there were 60 years outstanding we calculated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of costs.
Last Summer we were e-mailed by Mr and Mrs. I Lefèvre , who was assigned a lease of a first floor flat in Felling and Pelaw in January 2007. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical premises in Felling and Pelaw with a long lease were worth £210,000. The mid-range ground rent payable was £50 billed annually. The lease ended in 2106. Having 80 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.